UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: April 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________ to ___________
Commission file number
0-12619
Collins Industries, Inc.
(Exact name of registrant as specified in its charter)
Missouri
(State or other jurisdiction of incorporation)
43-0985160
(I.R.S. Employer Identification Number)
15 Compound Drive
Hutchinson, Kansas 67502-4349
(Address of principal executive offices) (Zip Code)
Registrant's telephone number including area code
316-663-5551
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $.10 par value 7,465,406
Class Outstanding at June 9, 2000
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
FORM 10-Q
April 30, 2000
INDEX
PART I. FINANCIAL INFORMATION PAGE NO
Item 1. Financial Statements:
Consolidated Condensed Balance Sheets
April 30, 2000 and October 31, l999 3
Consolidated Condensed Statements of Income -
Three and Six Months Ended April 30, 2000
and 1999 4
Consolidated Condensed Statements of Cash Flow -
Six Months Ended April 30, 2000 and 1999 5
Notes to Consolidated Condensed Financial Statements 6
Item 2.
Management's Discussion and Analysis of Financial
Condition and Results of Operations 8
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED BALANCE SHEETS
(Unaudited)
April 30, October 31,
2000 1999
ASSETS
Current Assets:
Cash $ 242,428 $ 344,948
Receivables, trade & other 6,776,030 5,146,834
Inventories, lower of cost (FIFO)
or market 37,844,018 36,218,152
Prepaid expenses & other current
assets 548,285 1,092,872
Total current assets 45,410,761 42,802,806
Property and equipment, at cost 42,553,931 41,234,902
Less: accumulated depreciation 24,010,743 22,895,341
Net property and equipment 18,543,188 18,339,561
Other assets 5,245,798 5,279,028
Total assets $69,199,747 $66,421,395
LIABILITIES & SHAREHOLDERS' INVESTMENT
Current liabilities:
Current maturities of long-term
debt & capitalized leases 1,476,072 1,460,113
Accounts payable 21,434,978 19,321,738
Accrued expenses 4,124,737 5,875,654
Total current liabilities 27,035,787 26,657,505
Long-term debt and capitalized leases 17,053,239 15,803,399
Shareholders' investment:
Common stock 746,541 746,541
Paid-in capital 18,094,900 18,094,900
Deferred compensation (831,646) (1,033,521)
Retained earnings 7,100,926 6,152,571
Total shareholders' investment 25,110,721 23,960,491
Total liabilities &
shareholders' investment $69,199,747 $66,421,395
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(Unaudited)
Three Months Ended Six Months Ended
April 30, April 30,
2000 1999 2000 1999
Sales $51,514,144 $46,766,843 $101,227,399 $84,940,875
Cost of sales 44,851,513 39,144,499 87,482,488 71,635,948
Gross profit 6,662,631 7,622,344 13,744,911 13,304,927
Selling, general and
administrative expenses 4,988,074 4,764,785 10,166,763 9,100,512
Income from operations 1,674,557 2,857,559 3,578,148 4,204,415
Other income (expense):
Interest expense (426,224) (449,154) (832,219) (853,055)
Other, net 33,241 53,303 93,906 175,196
Income before provision
for income taxes 1,281,574 2,461,708 2,839,835 3,526,556
Provision for income
taxes 377,000 946,000 932,000 1,340,000
Net income $ 904,574 $ 1,515,708 $ 1,907,835 $ 2,186,556
Earnings per share
Basic $ .13 $ .21 $ .26 $ .30
Diluted $ .12 $ .20 $ .25 $ .29
Dividends per share $ .025 $ .025 $ .13 $ .05
Weighted average common
and common equivilent
shares outstanding:
Basic 7,212,406 7,345,677 7,212,406 7,383,950
Diluted 7,536,642 7,444,991 7,545,755 7,443,081
(See accompanying notes)
Collins Industries, Inc. and Subsidiaries
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOW
(Unaudited)
Six Months Ended
April 30,
2000 1999
Cash flow from operations:
Cash received from customers $99,598,203 $85,867,446
Cash paid to suppliers and employees (96,589,879) (83,302,134)
Interest paid (857,794) (839,560)
Income taxes paid (1,195,654) (683,898)
Cash provided by operations 954,876 1,041,854
Cash flow from investing activities:
Capital expenditures and acquisition (1,319,031) (6,475,095)
Other, net (44,684) (166,382)
Cash used in investing activities (1,363,715) (6,641,477)
Cash flow from financing activities:
Net increase in other borrowings 2,007,230 7,279,643
Principal payments of long-term debt
and capitalized leases (741,431) (426,704)
Proceeds from exercise of stock options - 6,125
Acquisition and retirement of
treasury stock - (742,174)
Payment of dividends (959,480) (370,808)
Cash provided by financing activities 306,319 5,746,082
Net increase (decrease) in cash (102,520) 146,459
Cash at beginning of period 344,948 143,995
Cash at end of period $ 242,428 $ 290,454
Reconciliation of net income to net cash
provided by operations:
Net income $ 1,907,835 $ 2,186,556
Depreciation and amortization 1,513,925 1,138,937
Decrease (increase) in receivables (1,629,196) 926,571
Increase in inventories (1,625,866) (8,944,534)
Decrease in prepaid expenses and
other current assets 544,587 351,215
Increase in accounts payable and
accrued expenses 362,323 5,382,780
Other (118,732) 329
Cash provided by operations $ 954,876 $ 1,041,854
(See accompanying notes)
COLLINS INDUSTRIES, INC. AND SUBSIDIARIES
Notes to Consolidated Condensed Financial Statements
(Unaudited)
(1) General
The preparation of financial statements in conformity with
generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
In the opinion of management, the accompanying unaudited
consolidated condensed financial statements contain all
adjustments (consisting of only normal recurring items) necessary
to summarize fairly the Company's financial position and the
results of operations for the three and six months ended April
30, 2000 and 1999, and the cash flows for the six months ended
April 30, 2000 and 1999.
The Company suggests that the unaudited Consolidated Condensed
Financial Statements for the three and six months ended April 30,
2000 be read in conjunction with the Company's Annual Report on
Form 10-K for the year ended October 31, 1999.
(2) Inventories
Inventories, which include material, labor, and manufacturing
overhead, are stated at the lower of cost (FIFO) or market.
Major classes of inventories as of April 30, 2000 and October 31,
1999, consisted of the following:
April 30, 2000 October 31, 2000
Chassis $ 7,195,712 $ 5,507,600
Raw materials & components 11,898,018 11,066,127
Work-in-process 7,603,644 5,329,627
Finished goods 11,146,644 14,314,798
$37,844,018 $36,218,152
(3) Earnings per Share
Dilutive securities, consisting of options to purchase the
Company's common stock and restricted stock awards included in
the calculation of diluted weighted average common shares were
324,236 and 99,314 for the three months ended April 30, 2000 and
1999, respectively. The effect of dilutive stock options and
restricted stock awards on weighted average shares outstanding
was 333,349 and 59,131 for the six months ended April 30, 2000
and 1999, respectively.
(4) Contingencies and Litigation
At April 30, 2000, the Company had contingencies and litigation
pending which arose in the ordinary course of business.
Litigation is subject to many uncertainties and the outcome of
the individual matters is not presently determinable. It is
management's opinion that this litigation would not result in
liabilities that would have a material adverse effect on the
Company's consolidated financial position.
(5) Segment Information
Three Months Ended Six Months Ended
(In Thousands) April 30, April 30,
2000 1999 2000 1999
Revenues from external customers:
Ambulance $24,556 $19,993 $47,511 $36,778
Buses 17,093 18,514 35,054 34,495
Terminal Trucks 9,865 8,260 18,662 13,668
Other - - - -
Consolidated Total $51,514 $46,767 $101,227 $84,941
Segment profit (pretax):
Ambulance $ 690 $ 1,259 $ 1,391 $ 1,617
Buses 640 1,527 1,736 3,004
Terminal Trucks 769 393 1,399 395
Other (817) (717) (1,686) (1,489)
Consolidated Total $ 1,282 $ 2,462 $ 2,840 $ 3,527
As of
April 30, October 31,
2000 1999
Segment assets:
Ambulance $30,234 $26,996
Buses 25,469 26,713
Terminal Trucks 10,817 10,197
Other 2,680 2,515
Consolidated Total $69,200 $66,421
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
RESULTS OF OPERATIONS:
Sales
Sales for the three and six months ended April 30, 2000,
increased 10% and 19%, respectively, compared to the same periods
in fiscal 1999. These increases were principally due to increased
ambulance and terminal truck sales partially offset by a decrease
in bus sales.
The Company's consolidated sales backlog at April 30, 2000
increased 32% to $78.8 million compared to $59.6 million at
October 31, 1999. The Company's consolidated sales backlog was
$77.2 million at April 30, 1999.
Cost of Sales
Cost of sales for the quarter ended April 30, 2000 was 87.1% of
sales compared to 83.7% for the same period in fiscal 1999. The
Company's cost of sales for the six months ended April 30, 2000
was 86.4% of sales compared to 84.3% of sales for the same period
in fiscal 1999. The increase in cost of sales as a percent of
sales for the three and six months ended April 30, 2000 was
principally due to higher terminal truck sales and higher chassis
sales which carry lower gross margins.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased $.2
million and $1.1 million for the three and six months ended April
30, 2000 and 1999, respectively. These increases were
principally due to higher sales distribution costs of ambulance
products.
Other Income (Expense)
Interest expense for the three and six months ended April 30,
2000, decreased principally as a result of the Company's
reduction in debt. This decrease was partially offset by an
overall increase of the Company's effective interest rates.
Net Income
The Company's net income for the three months ended April 30,
2000 was $.9 million ($.12 per share-diluted) compared to $1.5
million ($.20 per share-diluted) for the same period in fiscal
1999. The decrease in the Company's net income was principally
attributable to lower profit contributions from ambulance and bus
products. Ambulance products profit contribution was lower
principally due to higher selling costs associated with the
expanding distribution network of ambulance products. Bus
products profit contribution was lower principally due to a sales
volume decline. These decreases were partially offset by an
increase in terminal truck profits wich resulted from increased
unit sales.
The Company's net income for the six months ended April 30, 2000
was $1.9 million ($.25 per share-diluted) compared to $2.2
million ($.29 per share-diluted) for the same period in fiscal
1999. The net income change was principally due to the same
reasons discussed in the immediately preceding paragraph.
LIQUIDITY AND CAPITAL RESOURCES:
The Company used existing credit lines, internally generated
funds and supplier financing to fund its operations and capital
expenditures for the three and six months ended April 30, 2000.
Cash provided by operations was $1.0 million for the six months
ended April 30, 2000 compared to $1.0 million for the six months
ended April 30, 1999. Cash provided by operations principally
resulted from the Company's net income ($1.9 million),
depreciation and amortization ($1.5 million), a decrease in
prepaid expense ($.5 million), and an increase in accounts
payable ($.4 million) and was partially offset by an a increase
in inventory ($1.6 million), and an increase in accounts
receivable ($1.6 million), during the six months ended April 30,
2000.
Cash used in investing activities was $1.4 million for the six
months ended April 30, 2000 compared to $6.6 million for the six
months ended April 30, 1999. The decrease was principally due to
lower capital expenditures and the acquisition costs associated
with the purchase of Mid Bus in fiscal 1999.
Cash flow provided by financing activities was $.3 million for
the six months ended April 30, 2000 compared to $5.7 million for
six months ended April 30, 1999. This change principally
resulted from lower new borrowings for the six months ended April
30, 2000 compared to the same period in 1999. This decrease was
partially offset by the payment of a special cash dividend of
$.08 per share ($.6 million) paid in January, 2000.
The Company believes that its cash flows from operations and bank
credit lines will be sufficient to satisfy its future working
capital and capital expenditure requirements.
Cautionary Statement Regarding Risks and Uncertainties That May
Affect Future Results
This report and other written reports and oral statements made
from time to time by the Company may contain so-called "forward-
looking statements" about the business, financial conditions and
prospects of the Company, all of which are subject to risks and
uncertainties. One can identify these forward-looking statements
by their use of words such as "expects", "plans", "will",
"estimates", "forecasts", "projects", and other words of similar
meaning. One can also identify them by the fact that they do not
relate strictly to historical or current facts. One should
understand that it is not possible to predict or identify all
factors, which involve risks and uncertainties. Consequently,
the reader should not consider any such list or listing to be a
complete statement of all potential risks or uncertainties.
No forward-looking statement can be guaranteed and actual future
results may vary materially. The actual results of the Company
could differ materially from those indicated by the forward-
looking statements because of various risks and uncertainties
including without limitation, changes in product demand, the
availability of vehicle chassis, adequate direct labor pools,
changes in competition, interest rate fluctuations, development
of new products, various inventory risks due to changes in market
conditions, changes in tax and other governmental rules and
regulations applicable to the Company, substantial dependence on
third parties for product quality, reliability and timely
fulfillment of orders and other risks indicated in the Company's
filings with the Securities and Exchange Commission.
The Company does not assume the obligation to update any forward-
looking statement. One should carefully evaluate such statements
in light of factors described in the Company's filings with the
Securities and Exchange Commission, especially on Forms 10-K,
10-Q and 8-K (if any).
PART II - OTHER INFORMATION
Item 1 - Legal Proceedings
Not applicable
Item 2 - Changes in Securities
Not applicable
Item 3 - Defaults on Senior Securities
Not applicable
Item 4 - Submission of Matters to a Vote of Security-Holders
The Company's 2000 Annual Meeting of Shareholders was held
February 25, 2000. Mr. Lewis W. Ediger and Mr. Arch G.
Gothard were each elected as a director for a three-year
term. Mr. Ediger received 6,723,062 votes for, 37,111
against and no abstentions. Mr. Gothard received 6,714,560
votes for, 45,613 against and no abstentions. The other
directors whose term of office continued after the meeting
were: Don L. Collins, Donald Lynn Collins, Robert E. Lind,
William R. Patterson and Don S. Peters.
For the fiscal year ending October 31, 2000, the Company
also ratified the appointment of its independent public
accountants, Arthur Andersen LLP at its 2000 Annual
Meeting of Shareholders. Arthur Andersen LLP received
6,739,594 votes for, 9,280 votes against and 11,299
abstentions.
Item 5 - Other Information
Not applicable
Item 6 - Exhibits and Reports on Form 8-K
(a) Exhibits:
27.0 - EDGAR Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed during the
quarter ended April 30, 2000.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
COLLINS INDUSTRIES, INC.
(REGISTRANT)
DATE: June 9, 2000 /s/ Larry W. Sayre
LARRY W. SAYRE
VICE PRESIDENT - FINANCE AND
CHIEF FINANCIAL OFFICER
(Principal Accounting Officer)
